Volvo has blamed LiDAR supplier Luminar for failing to meet its “contractual obligations”

                                        https://www.carscoops.com/author/bradcarscoops-com/                                    

Many car manufacturers view LiDAR sensors as a key component in advanced self-driving systems, and Volvo was among the first to commit to the technology. The Swedish automaker partnered early with U.S.-based LiDAR manufacturer Luminar, planning to integrate the sensor into its next generation of vehicles. But that partnership has now taken a sharp turn.

Read: A Costly Mistake And A Doomed Flagship EV Cost Volvo Over A Billion Dollars

Earlier this week, Volvo confirmed that the 2026 ES90 and EX90 models will no longer be offered with a LiDAR sensor, reversing its previous approach. The technology had started as standard equipment, later became an option, and is now gone altogether.

What Changed?

According to Volvo, the decision was made “to meet customer demand and due to limited supply of the lidar hardware.”

Despite ditching the important sensor, Volvo insists that the ES90 and EX90 will continue to meet its safety standards and “provide a high level of driver support.” What it didn’t comment on is whether the absence of the sensor will affect its driver assistance functions.

Also: Volvo’s LiDAR Sensor Will Fry Your Mobile Phone’s Camera

In a statement, a Volvo Cars USA spokesperson added the decision was made “to limit the company’s supply chain risk exposure, and it is a direct result of Luminar’s failure to meet its contractual obligations to Volvo Cars.”

Volvo further stated, “The company’s products can deliver a high level of safety and driver support, enabled by the cars’ powerful core computing coupled with their advanced sensor set, with or without a lidar.”

The automaker acknowledged the decision will affect some existing customer orders and said it is reaching out to those impacted.

Luminar Files For Damages

Luminar, unsurprisingly, isn’t happy with Volvo’s decision. Back in late October, when Volvo shifted LiDAR from standard to optional, the sensor company filed a claim seeking significant damages. It also cautioned that recovering any of those losses might not be possible.

Then, on November 14, Luminar confirmed that Volvo had terminated its contract altogether. That move cuts deeply, since Volvo had been the company’s largest single customer, a blow that could leave Luminar rethinking its long-term future in automotive partnerships.